IRS Sending Education Letters to Virtual Currency Owners

The IRS is sending letters to virtual currency owners with the intention of educating them about their tax and filing obligations.  The letters indicate that the taxpayer may owe taxes because of improper reporting of virtual currency transactions,

If you receive one of these letters, please contact our office and speak to one of our tax professionals.

Here is a link to the IRS announcement

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Expanded List of Preventive Care for HSA Participants

IR-2019-129, July 17, 2019

WASHINGTON — The Internal Revenue Service today added care for a range of chronic conditions to the list of preventive care benefits that may be provided by a high deductible health plan (HDHP). Notice 2019-45 (PDF), posted today on IRS.gov, lists the new types of medical care that may be treated as preventive care for this purpose.

Individuals covered by an HDHP generally may establish and deduct contributions to a Health Savings Account (HSA) as long as they have no disqualifying health coverage. To qualify as a high deductible health plan, an HDHP generally may not provide benefits for any year until the minimum deductible for that year is satisfied. However, an HDHP is not required to have a deductible for preventive care (as defined for purposes of the HDHP/HSA rules).

The Treasury Department and the IRS, in consultation with the Department of Health and Human Services, have determined that certain medical care services received and items purchased, including prescription drugs, for certain chronic conditions should be classified as preventive care for someone with that chronic condition.

These medical services and items are limited to the specific medical care services or items listed for the associated chronic conditions specified in Notice 2019-45. Any medical care previously recognized as preventive care for these rules is still treated as preventive care.

Notice 2019-45 provides that the following services and items for individuals with the specified chronic conditions listed are treated as preventive care.

Preventive Care for Specialized Conditions For Individuals Diagnosed with:
Angiotensin Converting Enzyme (ACE) inhibitors Congestive heart failure, diabetes, and/or coronary artery disease
Anti-resorptive therapy Osteoporosis and/or osteopenia
Beta-blockers Congestive heart failure and/or coronary artery disease
Blood pressure monitor Hypertension
Inhaled corticosteroids Asthma
Insulin and other glucose lowering agents Diabetes
Retinopathy screening Diabetes
Peak flow meter Asthma
Glucometer Diabetes
Hemoglobin A1c testing Diabetes
International Normalized Ratio (INR) testing Liver disease and/or bleeding disorders
Low-density Lipoprotein (LDL) testing Heart disease
Selective Serotonin Reuptake Inhibitors (SSRIs) Depression
Statins Heart disease and/or diabetes

 

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2020 HSA Contribution Limits

The 2020 annual limit on HSA contributions will be $3,550 for self-only and $7,100 for family coverage. The self-only contribution limit will rise by $50, while the family contribution will rise by $100. That’s about a 1.5 percent increase from 2019 contribution limits.

For calendar year 2020, a “high deductible health plan” is defined under § 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,400 for self-only coverage or $2,800 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,900 for self-only coverage or $13,800 for family coverage.

Both increases are inflation adjusted amounts for calendar year 2020.

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IRS E-Mail Scams

As is typical at this time of the year, there are phishing e-mails circulating. The one we saw today appeared to be from the IRS, and was sent claiming that the recipient was entitled to a refund. All that the recipient had to do was complete a form with their personal information. PLEASE BE AWARE OF THESE SCAMS. The IRS will not request any personal information through e-mail. If you receive an e-mail of this type, please do not provide any personal information. Some of the fraudulent e-mails look convincingly real. Be weary of providing any personal information to anyone over e-mail or the phone.

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Michigan Tax-Payers beware…

Michigan taxpayers with past-due tax debts should be aware of a new scam making the rounds through the U.S. Postal Service, according to the Michigan Department of Treasury.

In the scheme, taxpayers are sent what appears to be a government-looking letter about an overdue tax bill, asking the taxpayer to immediately contact a toll-free number to resolve a tax debt or face asset seizure. The piece of correspondence appears credible to the taxpayer because it uses specific personal facts about the outstanding tax debt pulled directly from publicly available information.

The scammer’s letter attempts to lure the taxpayer into a situation where they could make a payment to a criminal.

ALL taxpayers should be aware of this scam.

Contact our office if you receive any tax correspondence.

Please remember: the state Treasury Department’s correspondence involves official letters sent through the U.S. Postal Service, including several options to resolve your debt and information outlining your taxpayer rights.

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Many retirement plan dollar limits increase for 2019

IRS has announced the 2019 cost-of-living adjustments (COLAs) with respect to retirement plan limits.

The following plan limits are increased effective Jan. 1, 2019:

Elective deferrals: The maximum deferral amount for 401(k) and 403(b) plans increases from $18,500 to $19,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $6,000.

SIMPLE accounts: The maximum deferral amount for a SIMPLE plan increases from $12,500 to $13,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $3,000.

Government, etc. deferred compensation plans: The limit on deferrals for deferred compensation plans of state and local governments and tax-exempt organizations, increases from $18,500 to $19,000 for 2019. Catch-up contributions for individuals aged 50 or over remains $6,000.

IRA and Roth IRA income limits: The maximum contribution for IRA and Roth IRA accounts increases from $5,500 to $6,000 for 2019. Catch-up contributions for individuals aged 50 or over remains at $1,000.

Contact our office for more information, or see the full IRS notice: Notice 2018-83, 2018-47 IRB; 11/1/2018.

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2017 – 12/15

The IRS announces standard mileage rates for 2018. The optional mileage allowance for owned or leased vehicles (including autos, vans or pickups) will climb 1 cent to 54.5 cents per mile for business travel. Employers also can use this rate for reimbursements to employees who supply their own autos for business use, and to value personal use of certain low-cost employer-provided vehicles. The rates for using a car to get medical care and in connection with a move that qualifies for the moving expense deduction also increase by 1 cent, to 18 cents. (Notice 2018-3) 

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New Rules for Reporting Unclaimed Property in Michigan

Most businesses have unclaimed property resulting from normal operations. Any asset, tangible or intangible, belonging to a third party that remains unclaimed for a specified period of time is considered unclaimed property. For example, uncashed payroll checks must be turned over to the State after one year; most other property types, such as vendor checks and accounts receivables credit balances, must be turned over after three years. Government entities must turn over all unclaimed property, regardless of property type, after one year.

Michigan’s Uniform Unclaimed Property Act, Public Act 29 of 1995, as amended, requires businesses and government entities to report and remit to the Michigan Department of Treasury abandoned and unclaimed property belonging to owners whose last known address is in Michigan. In addition, every business or government entity that is incorporated in Michigan must report and remit abandoned property belonging to owners where there is no known address.

New for 2017: Entities without unclaimed property to report under the Michigan Uniform Unclaimed Property Act (Public Act 29 of 1995, as amended) are strongly encouraged to file a zero or negative report. Beginning in 2018, all entities registered to do business in the State of Michigan with nothing to report will be required to submit negative reports. All entities have the ability to both report and remit payments electronically.

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Judge blocks Overtime Rule

A federal judge has blocked the Overtime Rule that was set to go into effect December 1st, affecting more than 4 million workers in the U.S. The rule issued by the Labor Department would have doubled the maximum salary to $47,500 that a worker can earn and still be eligible for mandatory overtime pay.  Read more about the federal injunction here. http://on.wsj.com/2guiQg7 Contact our office with questions or concerns about how this may affect you and your business.

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